This shipment represents the first export of iron ore since Cadence vested its equity interest (27%) in the Amapa Iron Ore Project earlier this year. The shipments completed last year were approved via a court petition and were before our equity interest in the Amapa Project.
We expect that this shipment will complete this month, and under the current economic environment, DEV intends to continue with the shipment and sale of its 58% iron ore stockpile. There is currently circa 1.25 million tonnes of DEV stockpile at its port in Santana.
In addition to this shipment DEV has continued to provide ship loading and transport services for the third party owned stockpiles at DEV’s port.
About the Amapa Project
Amapa commenced operations in December 2007 with the first production of iron ore concentrate product of 712 kt in 2008. In 2008 Anglo American (70%) and Cliffs (30%) acquired the Amapa Project in 2008 as part of a larger package of mining assets in Brazil.
Production steadily increased to 4.8 Mt and 6.1 Mt of iron ore concentrate product in 2011 and 2012. During this period, Anglo American reported operating profits from its 70% ownership in the Amapa Project of US$ 120 million (100% US$ 171 million) and US$ 54 million (100% US$ 77 million). Before its sale in 2012, Anglo American valued its 70% stake in the Amapa Project at US$ 866 million (100% US$ 1.2 billion). It impaired the asset in its 2012 Annual Accounts to US$ 462 million (100% US$ 660 million).
Cadence updated the Mineral Resource Estimate on November 2nd 2020, increasing the MRE by 21%. The current MRE contains a Mineral Resource of 176.7 million tonnes grading 39.7% Fe in the Indicated category and Mineral Resource of 8.7Mt at 36.9% in the Inferred category, both reported within an optimised pit shell and using a cut-off grade of 25% Fe.
Details of Ownership and Joint Venture Agreement
Cadence Minerals owns 27% of the Amapa Project, with our joint venture partner, Indo Sino Pty Ltd, owning the remaining 73%. The ownership of Amapa is via a joint venture company, Pedra Branca Alliance Pte. Ltd., which owns 100% of the equity of DEV Mineração S.A.. Should Indo Sino seek further investors or an investment in the JV Co, Cadence has a first right of refusal to increase its stake to 49%.